Tax officials have started sending out notices to various Wakf boards for not paying service tax and GST on rent received from properties being used for non-religious and non-charitable purposes, a source said.

Out of the 30 Wakf boards in the country, only two — Kerala State Wakf Board and Dawoodi Bohra Wakf, Mumbai — are registered under the Goods and Services Tax (GST) regime.

“The Department has started sending show cause notices to the Wakf boards for default in payment of erstwhile service tax which was required to be paid on rental income from leasing of properties for commercial purpose. The same is applicable under GST,” a source told PTI.

The source, further said, that Wakf boards collectively are the largest owner of immovable property after defence and railways and the estimated tax revenue that could accrue to the exchequer could be around Rs 100 crore annually.